Employment in the logistics sector faces an uncertain future
Good morning! Friday is upon us. On average, a year has 52 Fridays - today is the 32nd of the year. Over halfway through; what will you do with the rest of them?
Well, for some, it might be spent on the job hunt. The pandemic changed a lot of mindsets in the workforce, forcing employees to rethink their lives and then reevaluate new opportunities. Within the logistics sector, some are concerned about Amazon’s plan to shrink their warehouse space and an ongoing trucker shortage… but is it still a workforce market in the employee’s favor?
Check out today’s featured article from Supply Chain Management Review to read about the ongoing employment issues in the supply chain industry: are we preparing for a downturn? Or are the opportunities for better wages and improved positions only growing? ☕️
Featured Article:
Logistics employment: What is happening? - Supply Chain Management Review
“As supply chains adapt to the new realities and employees continue to jump around to new opportunities, the job of a supply chain manager will continue to be more difficult.”
Warehouse & Shipping Fulfillment 📦
Shopify bets on the “vertical integration of logistics”
Shopify’s fulfillment network has been stretched thin. The company is now making moves behind the scenes to counteract the slowing e-commerce market, betting on its own fulfillment capabilities to ease the substantial logistics burden upon its sellers.
The company’s CEO Tobias Lütke cited competitors such as Amazon on a Q2 earnings call, hoping to snatch some of the dwindling e-commerce business after Amazon struggled with profits earlier this year. Shopify itself suffered a $1.2 billion net loss in Q2 after incorrectly forecasting that e-commerce spending would continue to far surpass physical retail. Company CFO Amy Shapero is now suggesting that inflation will instead further dampen the e-commerce trend that reached its height during the pandemic years.
Company Culture 🎉
Companies focus on employees who are ready to embrace digital overhaul
The logistics world is changing - we all know this. And with change, comes challenges.
The supply chain marketplace is facing a roadblock: integrating with new technology. Those who are willing to adapt will survive. Supply chain software programs and strategies are being implemented across the board, from maritime to rail to trucking. Companies that are adapting to the technology are ahead of the game, but hiring and effectively managing employees who are willing, ready, and able to learn how to utilize these programs are the real asset.
Digital transformation success relies upon the right people and clear and concise communication. Organizations must put their efforts into hiring the right supply chain professionals for the job - those who can work in tandem with new tech.
Let’s Get Global 🌎
Travel Airplane GIF By South Park via GIPHY
🛢 Egypt’s El Hamra oil terminal, operated by Egypt’s Western Desert Operating Petroleum Co. on its northern coast, has become the host of approximately 700,000 barrels of Russian oil cargo. Following Russia’s invasion of Ukraine, the European Union has shied away from purchasing Russian oil shipments. This has left the country to become creative with how they obscure the oil cargo from prying eyes. While the El Hamra terminal owner could not be reached for comment, it is uncertain if the port will now be commonly used for Russian oil flows or if this was a unique situation. The European Union is set to ban all Moscow-originated oil shipments by the end of 2022, leaving many questions on how Russia will ship oil.
♻️ Amazon released some troubling data, citing that the company’s global carbon emissions rose 18% in 2021. Pandemic-driven buying seems to be the culprit, according to the company - which forced the mega-corporation to buy and build up a staggering amount of warehouse space to meet surging consumer demand. Amazon first began disclosing its carbon footprint in 2019 - this 18% disclosure in 2021 is a nearly 40% jump since the public data’s inception. The company’s 2021 operations amount to approximately 71.54 million metric tons of carbon dioxide released into the Earth’s atmosphere. This amount does not account for Amazon third-party sellers, which are responsible for their own data capture regarding this matter.
🇨🇳 The Chinese naval fleets have been running massive military operations off the coast of Taiwan, forcing shipping lanes to avoid the area. The Eastern Theater Command of the People’s Liberation Army of China has announced further drills off the eastern coast of Taiwan, including live-fire training. The Taiwan Strait - a key shipping route - is now in an ever-evolving situation as tensions rise in the area between Taiwan and China. Many shipping vessels are being rerouted and causing delays, according to shipbrokers. Insurance brokers are signaling that the area hasn’t yet been designated a war risk zone, so you can’t count on them stepping in if there are any incidents.
Unions 🪧
Amazon seeks to de-stabilize union in California, according to a leaked internal memo
The leaked internal memo from May 2021 penetrates through the notoriously private business strategies of one of the world’s most powerful companies and unveils them in an “anti-union” light. Amazon’s position on unions hasn’t exactly been a secret, but the company’s focus on strengthening “relationships with key policymakers and community stakeholders” has made it all the more clear.
After several unionization attempts earlier this year, one being successful in Staten Island, New York, the company has set its sights on neutralizing growing criticism of the company by one of the world’s most powerful unions, the International Brotherhood of Teamsters, out of California.
Teamsters has over 1.2 million members across several industries - including warehousing and logistics - and poses a major threat to Amazon’s growth plans. Unions often voiced criticism of Amazon workers’ higher-than-average work-related injuries and significantly challenging working conditions.
Today’s Trivia 🃏
Have you been paying attention to the news? Get the answers correct, and you can give yourself a pat on the back today.
How much did AI in the supply chain jump in 2020-21?
What major corp is shedding some of their warehouses?
Have job quit rates risen or lowered?
How much did Shopify spend to acquire Deliverr?
The logistics industry slowed down in July, T or F?
Where is Russia getting its oil to market now?
What is the newest food shortage?
Industry Forecast 📊
Can Improving Forecast Accuracy Address Our Demand Planning Woes? - Logistics Viewpoints
“If ‘the forecast is always wrong,’ is improving forecast accuracy even the solution to our demand planning woes?”
Logistics industry growth slows in July | DC Velocity
“A slowdown in the transportation market drives cooling conditions, but inventory and warehousing metrics remain in high-growth mode, latest LMI report shows.”
“The US Purchasing Managers Index (PMI) for July, released this week by the Institute for Supply Management (ISM), came in at 52.8, down again from a score of 53.0 in June, but still above the key 50 level that separates US manufacturing expansion from contraction.”
Trade & Border Issues 🗺
Supply Chain Data Is Key to Solving Global Food Crisis | SupplyChainBrain
“The world is experiencing a food crisis driven by a number of factors, including food waste, a shortage of goods and increased costs.”
Warehousing 📦
Supply Chain Graphic of Week: US Warehouse Vacancies at Record Lows - SC Digest
“Lots of inventory - and no place to put it.”
Automate Your Warehouse on a Budget that Makes Sense | Material Handling and Logistics
“New scalable technologies are required to enable smaller operators to justify lower-risk investments in automation.”
“Maersk said Wednesday that it expects a slowdown in global shipping container demand in 2022 amid weakening consumer confidence and supply chain congestion.”
Trucker’s Lounge 🧢
Logistics gives back: August 2022 | DC Velocity
“Here’s our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.”
Artificial Intelligence 🤖
Schneider Pilots Autonomous Freight Hauling in Texas - Fleet Management - Trucking Info
“The Aurora Driver autonomous technology will begin weekly hauls between Dallas and Houston with Aurora vehicle operators on board.”
Fuel ⛽️
White House: Falling fuel prices mean more than OPEC numbers - TheTrucker.com
“President Joe Biden traveled to Saudi Arabia last month on the possibility that he could get some additional oil production out of OPEC+ in coming weeks, but the cartel and other nations announced a scant increase Wednesday.”
Owner-Operators 🚛
Port of Oakland sues AB5 protesters with aim of stopping future disruptions | Transport Dive
“The Port of Oakland is suing truckers and others involved with AB5 protests that shut down the port and exacerbated congestion earlier this month, with the goal of preventing future blockades.”
Factoring 💸
Factoring company’s sudden freeze leaves drivers in the cold - Land Line
“Freight factoring is used by many drivers and is intended to provide upfront capital to run their businesses.”
Company Culture 🎉
A rare “thin place” may determine the future of work - SmartBrief
“It may feel more like years have passed, but, barely a year ago, talk of our collective return to work first began in earnest.”
Inflation 💸
Bank of England predicts recession at the end of the year | AP News
“The Bank of England announced its biggest interest rate increase in 27 years on Thursday as it forecast that the war in Ukraine would fuel further inflation and tip the U.K. economy into a prolonged recession.”
The Fed disagrees, but Main Street says ‘the recession is already here.’ - CNBC
“The CNBC/SurveyMonkey Small Business Confidence Index hit an all-time low in the third quarter 2022, with President Biden’s approval hitting an all-time low as well.”
Business Strategy 💡
Gartner survey shows substantial shifts in supply chain networks - Supply Chain Management Review
“In total, almost three quarters of supply chain leaders made changes to size and number of locations in their supply chain networks. “
Easing supply chain challenges means implementing better tech | Commercial Carrier Journal
“For well over a year the topic that’s been top of mind for companies across the globe is supply chain issues.”
As demand grows, fleets don’t have to run on empty | Fleet Owner
“Consumers are creating new delivery experiences that freight transporters must deal with.”
Retail 🛍
Surging Retail Inventories Are Swamping U.S. Warehouses | SupplyChainBrain
“All those excess retail inventories are starting to weigh on warehousing markets, says The Wall Street Journal.”
Safety 🦺
FMCSA Looks into TuSimple Accident - Safety & Compliance - Trucking Info
“Was an incident where a TuSimple truck made contact with a concrete medium divider simply a human error, or something that speaks to a potential larger issue with the company or with self-driving trucks in general?”
Watch: Innovations in Security for the Supply Chain | SupplyChainBrain
“Jamie Rutherford, director of sales for supply chain with Vector Security Networks, describes recent innovations in security for the supply chain, many of them suggested by customers themselves.”
Maritime 🚢
Confident Maersk Builds $19 Billion M&A War Chest - G Captain
“Maersk CEO Soren Skou told investors today he remained “confident” about the shipping line’s contracted customers sticking with their agreements, despite a backdrop of softer demand and container spot rates declining.”
Electric Vehicles 🔋
The electrification of transport is happening in odd and interesting places | AJOT.COM
“Some of the best zero-emission solutions are hidden from public view. One of them is a weird-looking, one-trick pony called a yard truck.”
'Electricity 4.0’ the future of sustainability - Schneider | Supply Chain Digital
“Schneider Electric’s Energy Management Chief, Steve Smith, says sustainability is most promising at the point renewable energy meets digital.”
Volvo Plans to Make Its Own Batteries in Electric Truck Shift | Transport Topics
“Volvo AB plans to build a “large-scale” battery plant in Sweden to meet an expected surge in demand for electric trucks and buses.”
Lordstown Motors expects limited production and deliveries of electric pickup in 2022 - CNBC
“Embattled electric truck startup Lordstown Motors on Thursday reaffirmed plans to begin commercial production of its first vehicle this quarter and roll out the first customer deliveries by the end of the year.”
Diversity 🤜🤛
Bureau of Prisons Expands CDL Training for Women | Transport Topics
“Efforts are underway in federal and state-level prison systems to help inmates train for and transition into careers in trucking upon their release, with the Federal Bureau of Prisons expanding its commercial driver license programs to focus on women, and Connecticut working on a new driver training program at its state prisons.”
Women In Trucking Association Announces its August 2022 Member of the Month - Women In Trucking
“The Women In Trucking Association (WIT) has announced Maria Rodriguez as its August 2022 Member of the Month.”
Leadership 🏆
Leadership’s magic word - SmartBrief
“I recently shared the stage at an industry conference with a well-regarded professor of neuroscience.”
American Politics 🇺🇸
Less Than Meets the Eye | City Journal
“Last week, Senate Majority Leader Chuck Schumer won the support of moderate Democrat Joe Manchin for a reconciliation proposal that some are hailing as the most significant climate legislation in U.S. history.”
US Economy 📝
Applications for US jobless claims up again last week | AP News
“More Americans applied for jobless benefits last week as the number of unemployed continues to rise modestly, though the labor market remains one of the strongest parts of the U.S. economy.”
The Answers 📝
Let’s hope you’re just checking, and not cheating.
How much did AI in the supply chain jump in 2020-21? 43%
What major corp is shedding some of their warehouses? Amazon
Have job quit rates risen or lowered? Risen
How much did Shopify spend to acquire Deliverr? $2.1 billion
The logistics industry slowed down in July, T or F? True
Where is Russia getting its oil to market now? Egyptian ports
What is the newest food shortage? Grain
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for July 31, 2025, from iLevel Logistics Inc.